Texas had $163.3 million in athletic revenue in 2011-12

Feb. 9, 2013
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The University of Texas athletics department, college sports' fiscal juggernaut, has recorded another staggering year: $163.3 million in revenue and $138.3 million in operating expenses for 2011-12, according to its latest annual financial report to the NCAA. / Brendan Maloney, USA TODAY Sports

by Steve Berkowitz and Jodi Upton USA TODAY Sports, USA TODAY

by Steve Berkowitz and Jodi Upton USA TODAY Sports, USA TODAY

The University of Texas athletics department, college sports' fiscal juggernaut, has recorded another staggering year: $163.3 million in revenue and $138.3 million in operating expenses for 2011-12, according to its latest annual financial report to the NCAA.

The report, obtained in response to an open-records request from USA TODAY Sports and Indiana University's National Sports Journalism Center, shows Texas with $103.8 million in football income alone. This is the first time a college has reported $100 million in revenue from one sport, according to data compiled by the NCAA that includes information from public and private schools.

In the 2011 football season, Texas went 4-5 in the Big 12 Conference and 8-5 overall after a win in the Holiday Bowl against California.

In May 2012, USA TODAY Sports detailed the overwhelming distance between Texas and all other NCAA Division I schools in revenue and expense during the 2010-11 school year.

It is unlikely that situation changed much in 2011-12.

Various components of Texas' financial report provide some staggering comparisons to the overall athletics finances of other Division I schools.

Texas' $25 million operating surplus for 2011-12 was more money than 135 of the roughly 220 Division I public schools spent on their entire athletics programs in 2010-11.

Texas' $13 million increase in revenue for 2011-12 was more money than 147 Division I public school athletics programs generated in 2010-11 from sources other than subsidies from student fees, institutional and government support.

Texas increased its annual operating expenses by $4.6 million over what it spent in 2010-11, so its operating surplus rose from $16.6 million.

Texas' athletics department transferred $8.3 million of the most recent surplus to the institution after transferring a little more than $9 million in 2010-11.

Texas had one of only 22 Division I public school athletics programs in 2010-11 to generate enough revenue, exclusive of subsidies, to cover expenses - the NCAA's benchmark of whether an athletics department is self-supporting. Less than 10 schools did this while receiving no subsidies. Even fewer accomplished both of those achievements and transferred money to their institution.

Texas actually had a $2 million decline in ticket sales in 2011-12 compared with 2010-11. However, that was more than offset by increases in donations; its share of Big 12 Conference and NCAA income; and revenue from royalties, licensing, advertising and sponsorships. The latter category is where Texas likely includes its take from the Longhorn Network, a dedicated cable channel for which it receives millions in guaranteed rights fees from ESPN.

Donations increased to $40.7 million, from $37.3 million.

The conference and NCAA share increased to a little more than $21 million, from $14.8 million.

While Texas reported nearly $104 million in football revenue, it reported about $25 million in football expenses. Both figures reflect the vagaries of how schools report their sport-by-sport revenues and expenses.

Some schools do not report certain revenue streams on a sport-by-sport basis, instead choosing to report them as being not specific to any one team. All of Texas' largest revenue streams have portions credited to football.

Similarly, some schools report expenses in a way that assigns portions of all major expense items to football. Texas reported $24 million in facilities-related expenses in 2011-12 -- its second-largest expense item, behind compensation for administrative and support staff. Of that amount, Texas reported $23.6 million as being not specific to any one team; less than $150,000 was assigned to football.